文档介绍:DE3J 35 Outcome 3&4
Contents
Introduction..................................................................nimum of one possible cause of the each variance. Finally, according to
data analysis, there have been some recommendations to management of Matteck
PLC. In Part B, It will have four different ways to evaluate financial performance and
give recommendations for Matteck PLC. These ways are ARR ,Payback, NPV and
IRR.
Part A
The flexed budget
For Flex budged of Matteck PLC, we can see the Appendix 1.
Calculate the Materials variances, Labour variances and
the Total overhead.
Direct the materials variances , labour variances and the
total overhead.
This section shows the Appendix 2.
- 2 -DE3J 35 Outcome 3&4
Variance analysis.
Material price variance:
The material price variance is ₤32,000(F). A ccording to the data analysis, it is ₤2/kg
less expensive than planned. The possible reasons can be divided into three points:
first, they could replace raw materials, using a lower - grade material. Second, the
supplier to provide some discount for this batch of raw materials. Finally, learn from
the case, the company has managed to locate new materials from an overseas. Due to
the product from overseas, according to different exchange rate, the material will
reduce the pri